So, you are young, and have a couple thousand at your disposal now, wondering “how can I make this $5,000 or $10,000 turn into a healthy sum when I am 65?” Luckily, you have come to the right place. In today’s world, there are a lot of ways to grow a pot of money in the long term, but some are better than others. Starting off on the right path early is crucial. Today we will cover some things you can start doing today to turn your couple thousand dollars into a great nest egg.
Passive Investing through Consumer ‘Growth Funds”
A lot apps are on the market like Stash and Acorns that allow you to invest passively in portfolios they have created with differing levels of intensity. Acorns for example, has several portfolios you can choose to invest a few dollars a week in, or round-up your everyday purchases into even, that can grow your nest egg over time. They are a great tool for anyone interested in getting their money safely into the markets without doing much work! Click the link here to sign up! Acorns – Invest, Earn, Grow, Spend, Later | Acorns
Active Investing in the Markets
If you want to take matters into your own hands and do some of the heavy lifting, your payoff definitely can be more significant. Active Investing means you are actually seeking out the stocks you are looking to invest in and purchase, and are doing research behind them. You are building yourself a portfolio. Look to diversify yourself into stable industry classes, and keep a look out on your basket of stocks on a weekly basis. A great tip is to invest the first 60% into stable high dividend-yielding stocks like AT&T ($T), Exxon Mobil Corp. ($XOM), and Coca Cola, Inc. ($KO) for example. Next, you should look at Investing 20% into high-growth stocks. These currently are found in the tech industry like Netflix ($NFLX), Qualcom ($QCOM), and Intel Corp. ($INTC). The last 10% you can look to play in more ‘speculative’ stocks like biotech and Pharmaceutical companies, that provide higher reward but do carry significantly greater risk than the other categories.
SAVE Money and Invest It!
Think you need that $5 Starbucks Frappuccino? Try making coffee at home, and toss that $5 into your active investing or passive investing portfolio instead, and watch how fast you compound your money. When you are young, look to cut out unnecessary expenses, and save with the long term goal in mind! Sacrifice small tings today, for a better tomorrow!